Facts don’t support UBS survey claims – FBAA

The Finance Brokers Association of Australia (FBAA) has rejected claims by UBS that suggests some brokers are advising clients to misrepresent figures.

The survey claimed that just over six per cent, or 84 of the 1228 borrowers surveyed said the broker directed misrepresentations in loan applications.

The FBAA’s Peter White questioned the accuracy of the entire survey, saying the amount of people purportedly surveyed represents only an estimated 0.09 per cent of all mortgages settled over the two year time period, and a number of the figures in the survey were inconsistent with APRA data and Industry data.

He also said there was “zero credibility” in the claim of a borrowers who admits to falsifying documents.

“Let’s be honest – if you are admitting to misrepresentation on a legal document it’s very easy to blame someone else and claim they made you do it.

“This really should not be taken seriously, particularly with the stringent regulations around the broking sector and responsible lending criteria which brokers adhere to.”

Mr White said the FBAA would not tolerate any unethical behaviour and that there was no incentive for brokers to misdirect clients.

“Our own data tells us that only a miniscule percentage of our members have had action taken against them and that overall, brokers are doing the right thing.

“I believe that not only are these figures wrong but that they are based on claims that can never be verified.

“It is a shame for the industry that this sort of misinformation is publicised but I am confident the regulators, the industry and the public know the truth.”